Natural gas processor and distributor,
MarkWest Energy Partners LP
) has issued an update about its natural gas liquids (NGLs)
pipeline, located at Wetzel County, WV, which was seriously
affected by a landslide last month.
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MarkWest expects the pipeline, closed since the incident
triggered by torrential rainfall and substantial soil erosion, to
resume operations by the middle of Oct, 2013. The partnership
pointed out that it has taken immediate measures to repair the
affected portions of the pipeline
However, the incident has not affected any of the processing
facilities of MarkWest Energy except Mobley and Sherwood. The
Mobley facility will remain closed until the pipeline is online
again, while the operations at the Sherwood complex have been
reduced. For fractionation and selling purposes, MarkWest Energy
is transporting NGL from the Sherwood facility using trucks.
Management is not expecting its financial report to get impacted
owing to the pipeline incident.
Denver-based MarkWest Energy, a master limited partnership (MLP),
is engaged in the gathering, processing and transmission of
natural gas, transportation, fractionation and storage of NGLs,
and the gathering and transportation of crude oil.
We like MarkWest Energy's high-quality and diverse portfolio of
midstream assets, which generate stable and recurring revenues
from long-term fee-based contracts.
However, acquisitions have historically played a major role in
the partnership's growth profile and are expected to remain
significant. MarkWest Energy may find it difficult to complete
accretive transactions in the future, which could negatively
impact its growth rate.
MarkWest Energy currently retains a Zacks Rank #3 (Hold),
implying that it is expected to perform in line with the broader
U.S. equity market over the next one to three months.
Meanwhile, one can look at oil and gas production pipeline MLPs
Kinder Morgan Energy Partners LP
Pioneer Southwest Energy Partners LP
Sunoco Logistics Partners LP
) that offer better prospects. All the partnerships sport a Zacks
Rank #2 (Buy).